Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $66 to buy from farmers and $25 to crush in the company’s plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $36 or processed further for $41 to make the end product industrial fiber that is sold for $89. The beet juice can be sold as is for $57 or processed further for $45 to make the end product refined sugar that is sold for $89. What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar?
Multiple Choice
$1 per batch
$23 per batch
$(4) per batch
$(177) per batch
